Cross hedging with stock index futures

• We examine cross hedging effectiveness between FTSE100 and world stock index futures. Our daily dataset spans from August 2002 through November 2019. apply OLS, VECM Wavelet to calculate OHR & effectiveness. US E-Mini DJIA$5 Australia S&P/ASX 200 are the best pairs. The optimal period for pairs is 256 days or longer. This paper examines UK futures developed emerging markets: US, Australia, Brazil, Japan, Hong Kong, Korea Malaysia. Maximal Overlap Discrete Transform (MODWT) hedge ratio empirical results show that contract instrument FTSE100, followed by 200. multiscale MODWT estimation suggest of more than with